Chinese Phones and Why it gained Global Popularity
Things are changing, and once giant companies like Samsung that have dominated the phone industry are receiving increased competition from Chinese phones. Throughout every continent, Chinese phones such as Huawei, Xiaomi, OnePlus, as well as OPPO are flooding the markets. It is expected that this is just the beginning while we see wars between the US and China. While this remains a puzzle, here are the reasons that have led to the shift in the scenario.
Soon your friend might own a Chinese phone. Not one of low quality but one that has more features than yours. In all other continents except in the USA where Apple is dominating are already china dominants. If things continue this way, then a few years down the line, huge companies like Samsung and Apple will be a thing of the past.
The cost of Chinese phones forms the basis for their wide acceptance globally. This forms a combination of many facts thus the final product comes at a lower price. For instance, cheaper hardware works to reduce the cost of the phone in the long run. Besides, the use of cheaper marketing methods like online methods undoubtedly drastically reduces the cost. Furthermore, China offers an increasingly less expensive labor cost than any other part of the world, thus reducing the overall cost of production. Moreover, with the increased reduction in overhead cost such as having no stores have worked in favor of the companies towards lowering the cost of the phones they produce.
When offered ha lower price, you will choose to save your money for something else rather than expensive phones. The developing countries have fallen for these prices. Thus the Chinese phones have mainly flooded in these markets.
Chinese companies have overhauled other companies in the market through innovation. With increased research as well as development, the quality of phones has been improved over the years. Additionally, China has invested so much towards research. For instance, Huawei alone invested 15 percent of its revenue into research and development, totaling $9.2bn in 2015. While this does not level up to those of Samsung it shows how they are committed to development. This investment has paid fruit as phones worth below $150 that have flooded the markets.
Since the change of strategy of flooding the world with cheap affordable phones to providing quality user-friendly continues to be the most compelling advantage of fostering china’s domination in the phone industry.
China’s economy has risen drastically over the years. On the other hand, businesses have succeeded too, and so has the success in acquisitions. For instance, the deal of IBM’s server business with Lenovo at a cost of $2.3bn as well as Motorola’s acquisition by Google at $2.91bn. These acquisitions have helped the different companies in china to have a competitive edge over other global companies. Companies like ZTE, Lenovo as well as Huawei have been the biggest beneficiaries of these acquisitions thus put them at a competitive edge.
Of course, the government has paid a critical role in transforming the Chinese phone industry. Increased pressure on ensuring innovation carries the day continues to persuade different Chinese companies to turn to innovation as the edge of completion. Besides, the change in how Chinese products are accepted is largely due to the action of government pressure.
Increased Brand Reputation and Awareness
The continued increase in the reputation of the different Chinese companies through their performance has skyrocketed their sales all over the world. Everyone knows of Huawei and thus likely to be a consumer of their products. Furthermore, the increased quality of their products has attracted customers to allover who have invited their friends.
On the other hand, the different ambitions of these companies whose aim is to make a global name rather than obtaining huge profits have seen them go to any length to ensure they receive loyalty from their customers.
China phones continue to flood the market as consumers shift towards their products. Big tech companies like Samsung and Apple continue to feel the heat of this competition. If these big companies do not adopt different measures to tackle this then there will be complete takeovers in a few years to come. However, creating ecosystems like that of Apple will work towards they remain relevant in addition to diversifying their customer base.
Through quality, affordability, and localization strategies, in addition to strategic marketing have set china’s head high into the future ensuring they remain focused on the future, not the present. While previously “Made in China” was a representation of poor quality, a shift to quality has changed China’s story.